POSCO’s Train 2 to complete construction at South Korean lithium hydroxide conversion facility in December

Train 2 of the facility has a nameplate lithium hydroxide capacity for 21,500 tonnes per year, the company source said.

Low levels of production were already underway for testing purposes, but commercial production levels will ramp up in early December, adding to the existing lithium hydroxide capacity from Train 1, which also has a nameplate capacity for 21,500 tpy.

During the June-September quarter, production of lithium hydroxide from Train 1 reached 1,965 tonnes, of which 97% achieved battery-grade specifications, according to Pilbara Minerals’ quarterly report released on October 30.

Production of lithium hydroxide at both trains feed on spodumene from Pilbara’s Pilgangoora Operation in Australia, according to the quarterly report.

“It is good to see that PPLS has successfully been ramping up production of Train 1 and will be ramping up to commercial levels for Train 2 in December, as this will be a source of IRA-compliant lithium hydroxide for the US market – something which is generally in short supply, given 78% of lithium hydroxide supply last year was manufactured in China. At full capacity, the plant would produce an equivalent to around 14% of last year’s global hydroxide production,” William Adams, Fastmarkets’ head of base metals and battery research, said.

“However, while IRA-compliant material is in short supply, there is no shortage of lithium hydroxide per se, as can be seen by its price being at a discount to the lithium carbonate price and by various producers announcing they are closing some lithium hydroxide production lines,” Adams added.

Prices for battery-grade lithium hydroxide recently hit its lowest price level on a midpoint basis since Fastmarkets began pricing the market in 2017.

Fastmarkets assessed the lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price cif China, Japan & Korea at $8-9 per kg on November 12, but has since rallied to $8.50-10.00 per kg on Thursday November 21.

The lithium hydroxide price has fallen by more than 40% since the beginning of 2024 when it stood at $14.50-16.50 per kg.

PPLS is a joint venture in which POSCO Holdings has an 82% stake and Pilbara Minerals owns the remaining 18%.

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